The demand and supply function under perfect competition are \( Qd = 170 - 8P \) and \( Qs = -10 + 4P \) respectively, where P and Q denote price and…
BBA Business Mathematics II · 2023 · Solved Question with Answer
The demand and supply function under perfect competition are \( Qd = 170 - 8P \)and \( Qs = -10 + 4P \)respectively, where P and Q denote price and quantity, and price at initial time period is Rs. 10. The rate of adjustment of price when the market is out of equilibrium is\( \frac{dp}{dt} = 0.5(Qd - Qs) \), where \( \frac{dp}{dt} \) denotes price in Rs. Per week.
(a) Derive and solve the relevant differential equation to get the function for P in terms of t.
(b) What will be the price after 5 and 10 weeks?